Leach Inc. experienced the following events for the first two years of its operations: Year 1: 1. Issued $10,000 of common stock for cash. 2. Provided $110,000 of services on account. 3. Provided $33.000 of services and recelved cash. 4. Collected $77,000 cash from accounts recelvable. 5. Paid $16,000 of salaries expense for the year. 6. Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 6 percent of the ending accounts recelvable balance will be uncollectible. Year 2: 1. Wrote off an uncollectible account for $730. 2. Provided $130,000 of services on account. 3. Provided $20,000 of services and collected cash. 4. Collected $112,000 cash from accounts recelvable. 5. Paid $28,000 of salaries expense for the year. 6. Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 6 percent of the ending accounts recelvable balance will be uncollectible. Required a. Organize the transaction data in accounts under an accounting equation. b. Prepare the income statement, statement of changes in stockholders' equity. balance sheet, and statement of cash flows for Yea c. What is the net realizable value of the accounts recelvable at December 31, Year 1 ? Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a on the Accounts Titles for Retained Earnings, leave the cell blank. Not all cells will require entry.) Prepare the income statement for Year 1. Prepare the statement of changes in stockholders' equity for Year 1. Prepare the statement of cash flows for Year 1. (Cash outtlows What is the net realizable value of the accounts receivable at December 31 , Year 1 ? Leach Inc. experienced the following events for the first two years of its operations: Year 1: 1. Issued $10,000 of common stock for cash. 2. Provided $110,000 of services on account. 3. Provided $33.000 of services and recelved cash. 4. Collected $77,000 cash from accounts recelvable. 5. Paid $16,000 of salaries expense for the year. 6. Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 6 percent of the ending accounts recelvable balance will be uncollectible. Year 2: 1. Wrote off an uncollectible account for $730. 2. Provided $130,000 of services on account. 3. Provided $20,000 of services and collected cash. 4. Collected $112,000 cash from accounts recelvable. 5. Paid $28,000 of salaries expense for the year. 6. Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 6 percent of the ending accounts recelvable balance will be uncollectible. Required a. Organize the transaction data in accounts under an accounting equation. b. Prepare the income statement, statement of changes in stockholders' equity. balance sheet, and statement of cash flows for Yea c. What is the net realizable value of the accounts recelvable at December 31, Year 1 ? Organize the transaction data in accounts under an accounting equation. (Enter any decreases to account balances with a on the Accounts Titles for Retained Earnings, leave the cell blank. Not all cells will require entry.) Prepare the income statement for Year 1. Prepare the statement of changes in stockholders' equity for Year 1. Prepare the statement of cash flows for Year 1. (Cash outtlows What is the net realizable value of the accounts receivable at December 31 , Year 1
